- SMEs account for up to 60% of global business emissions - accelerating their decarbonization is key to meeting the Paris Agreement climate targets.
- New World Economic Forum survey indicates that 68% of industrial SMEs and mid-sized companies view sustainability positively, while 38% already see it as a business opportunity.
- The new report outlines a sustainable path and mechanisms for SMEs and mid-sized manufacturers to overcome top hurdles.
- For more information on the Annual Meeting of the New Champions 2025, visit wef.ch/amnc25 and share on social media using #amnc25, or #2025夏季达沃斯#. Read the report here .
Tianjin, People's Republic of China, 23 June 2025 - Small and medium-sized enterprises (SMEs) represent 90% of businesses globally and account for 40%-60% of business-sector greenhouse gas (GHG) emissions, yet they remain one of the most under-supported segments in the global sustainability transition.
A new white paper, Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers, released today by the World Economic Forum, indicates that if SME sustainability transitions are fast-tracked, the world could move significantly closer to achieving the Paris Agreement targets and unlock economic growth.
The report , released in collaboration with Schneider Electric, explores the shift in sustainability from a perceived cost to a strategic growth opportunity and provides a practical, five-stage roadmap for SMEs and mid-sized manufacturers to integrate environmental sustainability into their operations and business strategies. It also outlines the support mechanisms required from the public and private sectors to help with the transition.
"Small and mid-sized manufacturers have the potential to be powerful multipliers of climate action, particularly in decarbonizing value chains, as they play a critical role in global supply networks," said Kiva Allgood, Managing Director, World Economic Forum. "The roadmap in the report demonstrates how sustainable transformation is not only viable for smaller manufacturers - sustainability can also be leveraged as a competitive advantage in today's fast-evolving economic and regulatory landscape."
Under the Paris Agreement, nearly every country has committed to limiting global warming to well below 2C, with efforts to stay within 1.5C. To achieve this, global GHG emissions must peak before 2025 and decline by 43% by 2030 but current trajectories show the world is far off course.
The report's global survey of over 60 manufacturing SMEs, from diverse sectors and geographical areas - Europe, MENA, Africa, East and South-East Asia, North America and South America - reveals an evolving mindset to sustainability:
- 68% of respondents expressed a positive outlook
- 38% already view sustainability as a business opportunity
- 60% cited customer demand as the primary driver for action, ahead of regulation
Despite this, barriers remain. Over half (53%) of SMEs cited competing priorities such as cost pressures and expansion as the main obstacle to implementing sustainability. Others pointed to policy uncertainty (47%) and financial constraints (42%)
To overcome these hurdles, the report calls for a collaborative support mechanism from both the public and private sectors tailored to the specific needs of SMEs. It outlines a comprehensive toolkit of enablers, including access to finance, knowledge-sharing, networks, policy guidance and implementation support.
"The future of manufacturing depends on empowering SMEs and mid-sized companies to lead the way towards a more sustainable and inclusive global economy. Sustainability is as much an environmental imperative as an economic one for manufacturing companies," said Esther Finidori, Chief Sustainability Officer, Schneider Electric. "The leading SMEs and mid-sized manufacturers of tomorrow will be the ones who successfully leverage sustainability as a competitive advantage, building an end to end resilient and high-performance value chain on the journey."
The report emphasizes that aligning SME sustainability with business growth is not only possible but essential to limit global warming to 1.5C.
About the Annual Meeting of the New Champions 2025
The 16th Annual Meeting of the New Champions will take place from 24 to 26 June 2025 in Tianjin, People's Republic of China, under the theme "Entrepreneurship for a New Era." The meeting will convene over 1,700 leaders from business, government, civil society, academia, international organizations, innovation and media to explore entrepreneurial solutions to global challenges.
